A.M. Best Affirms Ratings of ASSA Compania de Seguros, S.A., Lion Reinsurance Company Limited and Reaseguradora America SPC Ltd
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The ratings reflect ASSA's continued excellent operating results, favorable capitalization and strong business profile. ASSA maintains a well-diversified book of business that includes both property/ casualty and life/health products.
In 2013, ASSA continued its strong underwriting and operating profitability, which it received in part from favorable overall earnings. The company has a proven track record of solid operating earnings, a superior capital position and extensive local market knowledge. Additionally, the improved operating environment in recent years has outweighed the company's concentration and regulatory concerns. ASSA also benefits from established risk management systems and strong reinsurance programs across most lines of business.
Partially offsetting these positive rating factors is ASSA's risk concentration in a geographically limited insurance market, along with operating in a country that
Positive rating actions could occur if ASSA maintains its consistently strong underwriting performance and long-term profitability in conjunction with an upgrading of
The ratings of Lion Re acknowledge its good capital position, conservative operating strategy and explicit parental support. The ratings also consider Lion Re's strategic role as a captive reinsurer of
Also inuring to Lion Re's ratings is its sound business plan, good underwriting performance and liquidity measures during its first three years of operation. Lion Re operates as a
The ratings of RAM Re reflect its adequate capitalization, explicit parental support and strategic role as an alternative risk transfer vehicle.
RAM Re's ratings also reflect a sound business plan, upon which the profitability and liquidity measures of the ratings are based. The ratings are supported by an amount of capital that meets
RAM Re will underwrite bancassurance, property/casualty (excluding or managing catastrophe cover under limited conditions), credit and debit card fraud, unemployment benefits and short-term group life related products.
These positive rating factors are partially offset by RAM Re's execution risk due to its unproven start-up nature.
Drivers that could lead to an upgrading of the ratings and/or a positive outlook for Lion Re and
ASSA, Lion Re and
For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of
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